Tata Group joins the league of online grocery business by acquiring Gurgaon-based GrocerMax
29th June 2017Category : E-CommercePublished by :Rahul Verma Reading Time : 3 Minute News Sourced : India
The versatile conglomerate Tata group will soon enter to another business in demand, online grocery business, after buying out the management team and technology infrastructure of Gurgaon-based GrocerMax.
The acquisition will boost the online platform for Trent Hypermarket, an JV between Tata and British retailer Tesco. This will drive Tata’s venture to get hold with the leading names Amazon and Bigbasket in ever-growing grocery business. GrocerMax will switch off its business in Gurgaon because the Tata group's grocery business is not present in North India.
Trent has set target of opening 200 stores in next two year and recently started its first hypermarket store, Star Hyper Hyderabad. The earmarked base for its chain across Mumbai, Pune, Bengaluru, and Hyderabad and is focussed on local sourcing for its vegetables and fruits by engaging with more than 150 farmers.
Tesco, the third-largest retailer is looking to capture the demand of $ 500B retail market that is attracting local and foreign players.
Reports by Morgan Stanley estimated food and grocery segment to become the fastest-growing segment, expanding at a compounded annual growth rate of 141% by 2020 and contributing $15 billion, or 12.5%, of overall retail sales.
Entrepreneur Gaurav Juneja and K Radhakrishnan launched GrocerMax in 2015. K Radhakrishnan was previously CEO of the value retail format of Reliance Retail Ltd. While Gaurav Juneja was India Executive Director of French investment bank Bryan, Garnier & Co.